What discretion does Crave have over national and regional brand development programs?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Recognizing the value of uniform marketing, advertising and promotion to the goodwill and public image of the System, you agree that we or our designee shall have the right to establish, maintain and administer a Brand Development Fund (hereinafter referred to as the "Fund") for such national and regional advertising programs as we may deem necessary or appropriate, in our sole discretion, as follows:
- 8.3.1 We shall direct all national and regional brand development programs with sole discretion over the creative concepts, materials, endorsements and media used therein, and the placement and allocation thereof.
You understand and acknowledge that the Fund is intended to maximize general public recognition and acceptance of the System and the Marks for the benefit of all Crave restaurants operating under the System, and that we undertake no obligation in administering the Fund to ensure that expenditures from the Fund are proportionate or equivalent to your contributions made for your Restaurant, or that any particular Restaurant or franchisee benefits directly or pro rata from the placement of any such advertising.
You understand and acknowledge that we may use up to five percent (5%) of the Fund to prepare and place advertising that is primarily a solicitation of franchise sales.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Crave retains sole discretion over national and regional brand development programs. This means Crave has the authority to direct all aspects of these programs, including creative concepts, materials, endorsements, and media usage. Crave also decides on the placement and allocation of these programs.
Crave emphasizes that the Brand Development Fund is intended to maximize recognition of the Crave system for the benefit of all Crave restaurants. Crave does not guarantee that fund expenditures will be proportionate to a franchisee's contributions or that any specific restaurant will directly benefit from advertising placement. This indicates that while franchisees contribute to the fund, they may not see direct or immediate returns in their specific location.
Furthermore, Crave can use up to 5% of the Brand Development Fund to prepare and place advertising that primarily solicits franchise sales. This means that a portion of the funds contributed by franchisees may be used to recruit new franchisees, which may or may not directly benefit existing franchisees. This is a common practice among franchisors as it grows the brand, which can indirectly benefit franchisees.